The maker of those wheeled-heeled sneakers that were all the rage for youths five years ago has found itself a white knight, agreeing to a stock deal with brand operator Sequential Brands Group Inc.

The deal, which values Heelys’ shares at $63.2 million, tops an earlier buyout offer from a private equity shop that would have led the company to liquidate. The new offer will allow the brand and company to live on, Heelys said.

In late October, Evergreen Group Ventures agreed to pay $13.9 million in cash for Heelys’ assets and the company would have then liquidated. That deal, which included a 30-day go-shop period, did not include the $58.2 million in cash and marketable securities that Heelys held. Evergreen would have only purchased the assets and the brand, which it said it would have licensed out.

Heelys was a classic one-hit wonder, but failed to replicate a massive spike in its sales.

WSJ

Sales in 2006 more than quadrupled from the year before to over $188 million as young kids across the country started rolling around schools and sidewalks. But the hype didn’t even last a year: sales in 2007 fell and quickly started a cliff dive. Sales in 2011 were off 83% from the 2006 high and were trending down again this year, with less than $20 million through the first nine months.

But Sequential, which operates and licenses several brands, sees potential to revive the craze.

“Heelys is recognized globally as a pioneer of skate shoes, and with its brand DNA rooted in innovation and skate, we see the potential for expansion in the future as a global lifestyle brand,” said CEO Yehuda Shmidman. “Fitting with Sequential’s brand-management business model, we have identified our long-term worldwide licensing partner for the core category of footwear, and will announce the partner and the team managing the Heelys brand shortly.”

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